Futures broker


Good afternoon DM,

I am in need of your help. I have had a personal account with AMP for over a year & last month had Traders Accounting form an LLC for me. It had to be at least two members but I formed it with 3 of my children ages 23,21 & 17. I sent AMP the application & it was denied due to the fact there are four members & AMP has a max of two members. I also applied for a LLC membership with NADEX & am in the process of fulfilling their 14 point checklist for acceptance. My issue is do you know of any other futures broker that can match AMP & allow me to keep the four members or should I have Traders Accounting revise the LLC to just two members & advise NADEX that two members had to be dropped because of AMP?


I’m not familiar with various brokers LLC requirements and setups even with that you have to look at everything not just if they allow for the preferred llc setup.

Whatever you choose until it definitely worth the expense i would keep it simple. You want to look at the whole picture. Margins, commissions, service, platforms, markets, etc… not just one piece (ie llc requirements) to see what is truly best for you and your trading make sure the trading takes precedent in the decision making process. What is best for your trading then let that help you decide the best broker entity setup etc…

Simplest method is just have no more than 2 people in the llc or amp will classify it as a commodity pool and you have to file a bunch of other paperwork. (so you could just keep your favorite child (or at least the responsible one) in the pool and kick the other kiddies out :slight_smile: )

You could potentially make an LLC with all four and just pass on p/l to it as well. from your main llc etc… again ask cpa about all this…


Thanks DM!..thats exactly what happened with Nadex, I had to go to the NFA site & file an exemption to the Commodity Pool Operator title. I will keep the responsible child in & cut the other two…LOL!..As soon as I get the LLC up & running I’ll be back to APEX…Thanks again!


I am a non US member and I want to use Nadex. I was looking at opening an LLC like this: Wyoming LLCs Wyoming Limited Liability Company Formation http://www.wyomingregisteredagent.com/wyoming-llc-limited-liability-company-formation-details.htm

Does Nadax accept that? Any have experience with this?


Hi Smeden,

I used them for my LLC which I needed as I no longer live in the USA and my experience was a good one. If you talk with them about some of the accounting issues for it I would suggest getting a second and even a 3rd opinion from the tax professional you use because each person’s situation is different & they are not tax experts but do offer some really good suggestions for you to think about if asked. If you are not residing in the USA I would also suggest you contact the compliance department at Nadex before you get too far into the details of your LLC as they can tell you what they can approve and what they cannot…keep in mind they want to say “yes” but you have to get them the paperwork they need to say yes. I found the attorney I dealt with at Nadex to be very helpful. It is in your best interest as well as Nadex. Good luck with this. It is just a small extra pain is all. Marilyn


Thanks Marilyn… I will talk to Nadex tomorrow and I will hear what they have to say. Guess the question is if I need a corp instead of an LLC when I live outside USA.


Guys, What the advantage of setting up a LLC account, taxes? Can anyone do this?



Yes, the primary advantage of trading through a LLC is extra tax deductions (if paying US taxes). The biggest deduction for most people would be their Health insurance premiums and Retirement plan contributions. If setup properly through the LLC a trader could deduct these two big ticket items from their trading income, something not possible with say just a Schedule C. If you need more info just Google something like “taxes for traders”.